The White House is accusing this country of “escalating” the cross-border tariff war after Canada’s retaliatory measures on $16.6 billion worth of American goods took effect over the weekend. “We’ve been very nice to Canada for many years and they’ve taken advantage of that,” White House Press Secretary Sarah Huckabee Sanders said in her daily briefing yesterday, while reiterating U.S. President Donald Trump recently suggested the two countries abandon all tariffs and trade barriers. “Escalating tariffs against the United States does nothing to help Canada.” That warning forces us to consider what the Americans’ next move will be. One thing is clear: Trump views auto tariffs as a sledgehammer. “That’s the big one,” he said in an interview with Fox on Sunday.

U.S. CHAMBER WARNING ON TARIFFS

The message from the U.S. Chamber of Commerce is simple: “Trade Works. Tariffs Don’t.” And it’s not just a catchy slogan. The group has produced an interactive map of the U.S. (https://www.uschamber.com/tariffs) with a message that’s sure to resonate with local politicians: the value of exports in each state that are subject to retaliatory tariffs (like the US$1.7-million in playing cards shipped to Canada from Nevada every year). We’ll chase the head of the Chamber.

NOW WHAT IN MEXICO?

Third time was a charm for Andres Manuel Lopez Obrador, the new president of Mexico. Top of mind for us are the stakes for NAFTA negotiations – which Trump indicated on Sunday will extend beyond the midterm elections. Beyond that, we’ll also consider what AMLO’s election means for Canadian companies operating in Mexico.

OTHER NOTABLE STORIES

-U.S. oil futures have climbed to the highest level since November 2014, climbing above US$75/barrel shortly after 9:00 a.m. ET.

-Shares of Glencore have plunged as much as 13 per cent this morning after the commodity conglomerate disclosed it was subpoenaed by the United States. The Department of Justice is seeking information about compliance with anti-corruption and money laundering rules.

-The White House confirmed that former Prime Minister Stephen Harper met with National Economic Council Director Larry Kudlow. Beyond that, and a couple of pics tweeted by the ex-PM yesterday, there isn’t much evidence of what took place behind the scenes during his visit.

-Longueuil, Que.-based Innergex announced yesterday it has acquired a solar development project in Texas that will cost a little more than a half-billion dollars to build.

-Green Organic Dutchman Holdings co-Chair & CEO Robert Anderson resigned yesterday due to health concerns. CFO Brian Athaide has been appointed CEO.

NOTABLE RELEASES/EVENTS

-Notable data: U.S. factory orders, U.S. durable goods orders

-1:00 p.m. ET: U.S. stock markets close early

-Automakers to report monthly sales

Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.